Tech Stocks Are Cheapest in Seven Years

U.S. technology stocks, the second-best industry of the past decade, have fallen to the cheapest levels in at least seven years and are vulnerable to more losses as analysts reduce second-quarter profit estimates.

Earnings at computer companies will fall 5.5 percent in the three months through June as consumers and government agencies cut spending, according to more than 2,000 analyst estimates tracked by Bloomberg. The group, led by Apple Inc. and International Business Machines Corp., trades at 13 times projected profit, the lowest level compared with the Standard & Poor’s 500 since Bloomberg began compiling the data in 2006.